Transfer/transaction fees Swiss bank accounts

Hello,

Do you have a detailed view of how swiss banks compare on foreign transaction fees for bank transfers and cards?

I'm trying to identify the best provider of a current account where I have low/no fees relating to doing euros and chf transactions.

Many thanks

Hi there,

The type of euro and Swiss franc transactions which you expect to make will determine which is the ideal bank account (or accounts) for your situation. The number of assets you expect to hold in your account also play a role. The following points apply to Swiss franc accounts. You can find information about Swiss euro accounts under the final header.

Transfers

If you regularly make bank transfers to accounts in countries which use euros, then using SEPA transfers is generally cheaper than using conventional wire transfers. SEPA transfers are offered by most Swiss banks for a low fee or no fee at all. If you are willing to use third-party solutions in addition to your bank account, exchange brokers (like Exchangemarket), peer-to-peer transfer services (like Transferwise and Currencyfair) and wire transfer services (like Western Union) may have smaller spreads and lower fees than banks. You can find more information in the moneyland.ch guide to sending money abroad.

Debit cards

If you regularly make use of a Swiss debit card to pay for purchases in euros or to withdraw euros at ATMs, then it is important to consider both the foreign transaction fees charged and the exchange spread used by the bank. The foreign transaction fees are accounted for in the moneyland.ch private account comparison and are clearly shown on the information pages of private accounts. Selecting the “individual profile” option lets you enter the number of international payments in euros which you expect to make, and the number of purchases in euros which you expect to pay for using your debit card.

The fee charged for cash withdrawals at ATMs outside of Switzerland is also significant. Typically, Swiss banks charge a cash withdrawal fee of 5 francs per withdrawal. Some charge an additional fee based on a percentage of the amount withdrawn (0.5% for example). It is worth noting that the Postfinance Private Account Plus (free of charge for customers with CHF 25,000 or more at the bank) does not charge a fee for cash withdrawals at ATMs outside of Switzerland (with the exception of the currency spread).

The private account comparison on moneyland.ch does not account for the spreads used by banks for currency conversions. You can find these spreads on money transfer comparisons like the one provided by Monito.

Credit cards

If you use Swiss credit cards to pay for purchases in euros, then pay attention to both the foreign transaction fees and the currency exchange spreads. The moneyland.ch credit card comparison accounts for both the foreign transaction fees and the spreads charged by credit card issuers – including banks.

Euro accounts

If a large part of your banking transactions are denominated by euros, or if you receive part of your income in euros, then it can be worth opening a euro account at a Swiss bank. The Aargauische Kantonalbank AKB, for example, offers a euro-based private accounts at just 12 francs per year (plus an annual fee for a debit card if needed). Using a euro account eliminates the expense posed by foreign transaction fees and currency exchange spreads when you receive incoming euro transfers or make outgoing euro transactions. The same holds true for euro credit cards offered by Swiss issuers.

However, if you do not receive income in euros then you should note that when you deposit money into your euro account or pay your euro credit card bill in Swiss francs, the currency exchange spread will apply. You may also be charged a foreign transaction fee for the deposit at some banks. Using a currency broker or peer-to-peer transfer service to move money between your Swiss CHF and EUR accounts can, in many cases, save you money because the fees and spreads are often lower than those used by Swiss banks. Monito provides a dedicated comparison which helps you find the cheapest option for transferring money between CHF and EUR accounts.

Another important point is that Swiss banks typically charge a fee when you withdraw euros from your euro account at Swiss ATMs. Some banks also charge a fee when you deposit euros into a euro account at the till. For example, UBS charges a fee of 1% (EURO 100-50,000) and 2% (EUR 0-1000) on top of the spread for euro deposits into euro accounts performed at the till, but only charges the spread without an additional fee for deposits made using its Bancomat Plus ATMs. These fees do not apply to incoming euro transfers.

You can find more information about euro accounts in the moneyland.ch guide to Swiss euro accounts.

Best regards from Moneyguru

More on this topic:
Guide to sending money abroad
Private account comparison
Euro accounts in Switzerland